Let's say that you’ve made a conscious strategic decision to vacate your leased property. You’ve sought advice from our lease advisory experts and served any required notice to your landlord. You’ve advised the team on site, and you’re all set to hand back your keys and sail off into the sunset.
It’s finally time to benefit from those occupational savings, until…..you receive a rather formal looking notice from your landlord or their solicitor claiming a considerable sum in dilapidations.
And you’re left wondering.....“What’s this all about? Was this meant for us? What the heck are dilapidations?”
Read this blog for answers to some of these burning questions. So, you can understand dilapidations a little better, smoothly exit your lease and sail off into the sunset, without too much heartache.
Let’s start with what we mean by dilapidations
Put simply, leases usually require a property to be put back in the same condition as when the lease was originally taken out (or an agreed benchmark). If you’ve left desks in the property, spilt coffee on the carpet, or thrown up walls to create offices, they often all need to be addressed before you leave. Anything you leave or damage will cost the landlord money to fix; so, dilapidations is effectively your bill for this.
Here are a few hints and tips to help you manage your dilapidations:
It pays to be proactive. It’s often better to try to maintain your property in a good condition throughout the lease and repair any damage. Take all your furniture / equipment with you when you leave. Make sure you document everything with the landlord, take lots of photos when you move out, keep hold of emails, certification, meter reads and key correspondence.
Now that you know a little more about dilapidations at lease end (and we’ve only scratched the surface), you can see that dilapidations can be a bit of a minefield, and some consider it a ‘dark art.’
The key takeaway is to make sure you seek advice. It can mean the difference between a hefty bill, or a very palatable one. As an occupier, you can use many arguments to try and limit your dilapidations liability, and a good surveyor will help you explore the avenues to negotiate a successful outcome.
We’ve managed and agreed over 100 dilapidations claims over the last few years, saving our occupiers and the NHS almost £8.5m in the process.
Not only do we have our own dilapidations experts within NHS Property Services, but we also have access to a trusted network of consultants to best represent your interests. If you want to learn more about dilapidations, or how we can best support you, download your Introduction to lease advisory or get in touch with our lease advisory team.
The webinar covered: